The Misguided Dream of Trump's 'Print More Money' Debt Reduction Plan
It's clear that many supporters of former President Donald Trump hold onto misguided notions about how to reduce our national debt. In 2017, one such idea was floated: print more money. This proposition not only failed to address the root cause of our debt but could have had catastrophic economic consequences. Let's delve into why printing more money would have been a disastrous path and highlight the historical examples that illustrate the folly of such a strategy.
Historical Precedents: Uganda and the Case of Idi Amin
The concept of inflating away national debt through the printing press is not a new one. The late Ugandan dictator, Idi Amin, also eyed this as a solution when his country was running low on cash. Instead of listening to the sound advice of his monetary experts, Amin arrogantly dismissed the warnings about money printing leading to hyperinflation. His advisors, who knew better, met an untimely end under his brutal rule. This illustrates the dire consequences of acting on such ill-advised economic policies.
The Odds Are Against Trump's Proposal
Many of Trump's supporters, much like those of Amin, have a fundamental misunderstanding of how economies operate. They failed to grasp that printing more money does not actually reduce the nation's debt; in fact, it can lead to widespread economic turmoil. By printing more money, countries devalue their currency, leading to inflation, which erodes the value of the national debt over time but does nothing to pay it down in real terms.
Hyperinflation: A Lesson from History
Hyperinflation is a stark warning of what can happen when a government relies on printing more money to solve economic problems. Zimbabwe provides a tragic example of this. The country's government printed more and more money in response to financial crises, leading to hyperinflation that eventually brought the economy to its knees. This serves as a chilling reminder of the potential long-term damage that these misguided policies can inflict.
Trump's Economic Policies: The Scam Mandate
Trump's proposed money printing plan was not the first scam in his economic portfolio. His track record is riddled with dubious practices, from contractual breaches to avoiding responsibilities he promised. For example, his claim of a one-time flat tax to reduce the national debt was just another false promise. His actions and lack of follow-through on such promises have led to skepticism among his supporters and critics alike.
Global Mockery of the Plan
The world would have quickly pinned down Trump's plan as another misguided policy. Not only would the dollar have plummeted, making imported goods more expensive and causing inflation to soar, but the global economy would have faced significant upheaval. Trump's advisors could have offered sound advice, but his inability to accept objective guidance from experts is a major flaw. His handling of the 2019 coronavirus pandemic, where he ignored the expert opinion of Anthony Fauci, shows a recurring pattern of rejecting sound advice in favor of dubious claims.
Global Implications
Implementing Trump's plan would have had international ramifications. Not only would the cost of imported goods increase significantly, causing inflation, but it would also affect the global market. This could lead to a recession, if not a prolonged depression, impacting economies worldwide. The same reluctance to accept expert advice that characterized his response to the pandemic would have doomed his economic plan to failure.
Conclusion
The lesson from history and current events is clear: economic stability is built on sound principles, not on short-term populist promises or flawed economic theories. While some may cheer for policies that promise immediate relief or growth, it's crucial to consider the long-term consequences. The failure of policies like Trump's 'print more money' plan is a stark reminder of the importance of listening to experts and adhering to established economic principles.